Travel Expenses: A Summary

To maximize the deduction for travel expenses, keep in mind the expenses that generally can be deducted while traveling away from home:

• Transportation fares or the actual costs (or a per mile rate) of using your own vehicle (including transportation costs of getting around in your work area, e.g., to and from hotels, restaurants, offices, terminals, etc.)
• Lodging
• Baggage handling
• Meals (subject to a 50% limit)
• Expenses of entertaining business contacts (subject to a 50% limit)

Gratuities related to the above expenditures are also deductible (subject to the 50% limit for gratuities connected with meals and entertainment (T&E)).

• Phone and fax charges
• Laundry

On the other hand, the following expenses cannot be deducted:

• Costs of commuting between your residence and a work site.

These costs may be deductible if your residence is also your business headquarters.

• Travel as education
• Job hunting in a new field or looking for a new business site

The T&E provisions are, of course, more complex, but the above discussion will serve as a basic review of the rules.

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